Guide to this report: The company integrates the first wave with Dream Star Garden, is based on in-hand quality IP, and relies on its strong quality content production capabilities to quickly build a business model for operating in all fields of IP, hoping to fully enjoy the market dividends of the hundreds of billion IP industry chain. Key investment points: First coverage, target price of 15.98 yuan, increased holdings rating. Using games and movies as an entry point, the company has created a business model that operates in all fields of IP, from high-quality IP acquisition, to quality content production, to IP. It hopes to enjoy the market dividends of comprehensive IP monetization in the pan-entertainment industry with rich high-quality IP reserves and strong quality content production capabilities. It is estimated that the 2017-2019 EPS will be 0.45/0.58/0.73 yuan, giving the company a target price of 15.98 yuan, covering the first time and giving it an increase in holdings rating. The IP industry chain operating model has brought in hundreds of billions of dollars in market size. The shift in the growth momentum of the game industry from population-driven to product-driven and strong supply and demand for premium movies and TV dramas both prove that top IP reserves and first-class IP operation capabilities are important driving forces for the explosion of the culture and entertainment industry. With the generalization of the IP concept, a comprehensive monetization model with IP as the core of the pan-entertainment industry, and various fields such as movies, TV dramas, text, games, variety shows, animation, etc., has begun to take shape. According to our estimates, the market size of the IP industry chain exceeded 300 billion yuan in 2016. Against the backdrop of increasing demand for entertainment and personalized content from new consumer groups, the monetization model for the entire IP-centered industry chain is gradually improving. The future IP operation market space is vast. Operate step by step to create operations in all areas of the IP industry chain. In terms of IP acquisition, the company binds starting platinum writers and well-known romance novelists through equity and in-depth cooperation models to reserve a large amount of top IP resources; in terms of IP content production, the first wave and Dream Star Life Park have adhered to a quality strategy for a long time, and have successively created a number of games, movies, and TV series products with a good reputation and revenue. As comprehensive IP operations gradually become a trend, the company has launched a business model in all fields of IP, including movies, TV dramas, animation, games, derivatives, etc., based on existing quality IP and its strong quality content production capabilities, and is expected to fully enjoy the market dividends of the hundreds of billion IP industry chain. Risk warning: Business integration and content production progress that falls short of expectations bring certain risks